Family businesses could avoid new tax rate
Family run businesses are considering doubling their normal dividend to offset Government’s tax hike on high-income earners.
The new 50% tax increase for those earning more than £150,000 will come into law on April 5th. This rise can be countered by family companies in a move that would allow family members to limit their tax liability.
Mary Monfries, head of UK private business at PricewaterhouseCoopers, said she has had a couple of clients “seriously thinking” about how to plan their finances over the next few years.
“I have had a couple [of clients] seriously thinking ‘What do I need funding-wise over the coming few years? If I take it out before April it will cost me less than if I did it afterwards,” she commented.
